The Limits of the Imagination was a short-lived sketch featured on the 1985–1986 season. It featured Randy Quaid as "The Floating Head", a Rod Serling-like character who would introduce a creepy, Twilight Zone-esque story with a weak ending (or no ending at all). The title was also reminiscent of the 1960s sci-fi anthology The Outer Limits.

Madonna/Simple Minds: In a loose parody of The Twilight Zone episode "The Hitich-hiker", Madonna plays a female motorist who is being followed by a crazy man (played by Jon Lovitz) living in the trunk of her car.

The Pathological Liar is a character created and portrayed by Jon Lovitz, often appearing on Weekend Update segments to share his farcical views. The character's name was Tommy Flanagan /fləˈneɪɡən/[1] not to be confused with the jazz pianist), and he would tell outrageous whoppers in an effort to make himself seem important (such as his claim that he invented Rock and Roll). One recurring lie was claiming he was married to Morgan Fairchild, and thus had seen her naked, "more than once". His devious look, hand rubbing and nervous speech made it clear he was making up lies, one after the other, on the spot. After a particularly outrageous lie he would often add the catchphrase: "Yeahhh! That's the ticket!"

One of his biggest lies, however, would work to his great advantage. During the cold opening when Jerry Hall hosted, Flanagan claimed to be an old friend of her then-boyfriend Mick Jagger; when Jagger entered moments later, he shocked her by revealing that the two were longtime friends, and had actually spent the previous weekend together, while she had no idea of his whereabouts, on a fishing trip. As he and Hall got up to leave, Jagger told Flanagan, "I owe you for this one", before opening the show.

Jon Lovitz plays a ruthlessly ambitious, egomaniacalactor who spoke with a plummy "Shakespearean" English accent and often elicited the sympathy of other characters in the sketch, only to reveal the ruse by declaring his catchphrase, "Acting!" His arch-rival and mentor, Baudelaire (John Lithgow), often had the last laugh in the escalating one-upmanship, in reality childish pranks and paperthin disguises that they both fell for, ostensibly due to their brilliant acting. On the few occasions we actually see him act, it is clear that he is not as good as his reputation would have us believe, on occasion seeming completely oblivious to the concept of acting. The sketch debuted December 7, 1985 and appeared 13 times between 1985 and 1989.